https://www.taxtmi.com/caselaws?id=197009 An amount deducted by customers towards service tax under the reverse charge mechanism was held not to be taxable as royalty income where it never accrued to or was received by the assessee and no enforceable right to recover it remained. The addition was therefore not sustainable, subject to factual verification by the Assessing Officer. Interest under section 234B also required reconsideration because advance tax liability must be computed after giving credit for tax deductible at source under section 209(1)(d); if the income is subject to TDS, default cannot be presumed without a valid finding on the underlying tax computation. en-us Fri, 26 Aug 2016 00:00:00 +0530 Thu, 21 Dec 2017 10:59:30 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=197009 An amount deducted by customers towards service tax under the reverse charge mechanism was held not to be taxable as royalty income where it never accrued to or was received by the assessee and no enforceable right to recover it remained. The addition was therefore not sustainable, subject to factual verification by the Assessing Officer. Interest under section 234B also required reconsideration because advance tax liability must be computed after giving credit for tax deductible at source under section 209(1)(d); if the income is subject to TDS, default cannot be presumed without a valid finding on the underlying tax computation. Case-Laws Income Tax Fri, 26 Aug 2016 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=197009